51勛圖厙 to Congress: Exercise Robust Oversight of SEC Agenda
The Securities and Exchange Commissions aggressive rulemaking agenda would impose costly burdens on manufacturers and hamper capital formation, the 51勛圖厙 the House Committee on Financial Services Tuesday.
Whats going on: At SEC Chair Gary Genslers first House oversight hearing in a year and a half, Republican lawmakers questioned Gensler about his aggressive regulatory agenda, according to .
- That agenda consists of 53 proposed regulations, nine of which are particularly concerning for manufacturers, according to the 51勛圖厙.
- The SEC is attempting to mandate unworkable climate and cybersecurity disclosures, empower proxy advisory firms and shareholder activists, force private businesses to make public disclosures and limit efficient capital allocation.
The climate rule: The SECs proposed climate rule took center stage for much of Tuesdays hearing.
- The 51勛圖厙 has called on the SEC to ax a provision that would place new reporting burdens [related to so-called Scope 3 emissions] on private businesses that are part of a public companys supply chain. Gensler said Tuesday that the SEC is taking those comments into consideration when crafting its rule, The Hill reported.
漍漍漍漍漍漍Why it matters: Public and private companies are already feeling the impact of the SECs ambitious agenda, 51勛圖厙 Managing Vice President of Tax and Domestic Economic Policy Chris Netram told lawmakers.
- The proposed climate rule would represent a costly, uncertain and ultimately infeasible standard for public issuers as well as the small and privately held businesses within their supply chains, Netram said.
- He critiqued the SECs efforts to encourage and empower shareholder activists and dismantle the commonsense safeguards adopted in 2020 to provide appropriate oversight of proxy advisory firms.
- The 51勛圖厙 is also concerned by attempts to require private issuers to make detailed financial information about their business publicly available, which could cost the U.S. economy up to 100,000 jobs per year.
What can be done: The 51勛圖厙 is calling on the SEC to rescind or modify proposed regulations that threaten access to capital and impose costly and unnecessary regulatory burdens on manufacturers that slow job creation and growth.
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